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Welcome to another edition of 🔍 Startup Researcher - North America and Israel, your essential digest delivering the latest news and premium insights on startups and venture capital across the region 🌎️

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📰 Important News

• Donald Trump’s attorneys asked the Supreme Court to pause the TikTok ban set for January 19 arguing it interferes with his foreign policy plans.

• Accounting startup Bench abruptly shut down on December 27 leaving thousands of businesses without access to their accounting and tax documents.

• OpenAI is planning to transition its for-profit arm into a Delaware Public Benefit Corporation to balance shareholder and public benefit interests.

• Palantir and Anduril are forming a tech consortium with companies like SpaceX and OpenAI to challenge major defense contractors.

• Terraform Labs co-founder Do Kwon will be extradited from Montenegro to the U.S. to face fraud charges after the collapse of TerraUSD and Luna.

💸 Top Funding Rounds

• xAI closed a $6 billion Series C round, boosting its valuation to $45 billion as it competes with OpenAI and others in the generative AI space.

• AusperBio raised $73 million in Series B funding led by HanKang Capital to advance trials of a functional cure for chronic hepatitis B.

• GEMMA Biotherapeutics secured $34 million in seed funding to advance gene therapy research and expand its programs.

• First Resonance raised $32 million to advance its ION Factory OS platform, supporting diverse industries including aviation and defense.

• Infinant secured $15 million in Series A funding led by FINTOP Capital and JAM FINTOP BankTech to expand its cloud-based Interlace platform.

💰️ Notable Exits

• USANA Health Sciences acquired a 78.8% controlling stake in Hiya Health for $205 million, expanding its presence in the children's wellness market.

• Coralogix acquired Aporia for $50 million to establish a new AI research center focused on enhancing AI system transparency.

• Stingray acquired Loupe Art to enhance its Connected TV and digital signage services.

• Kingbee Vans acquired Fluid Truck to improve fleet rental availability and provide businesses with flexible vehicle solutions.

• SNR Capital acquired Thirteen Lune and its sister brand Relevant: Your Skin Seen, to expand globally and push its diverse founder-focused mission.

🏦 About Investors

• Peter Thiel’s Founders Fund is raising $3 billion for its third growth equity fund with most capital from its second fund already deployed.

• Veritas Capital raised $270 million from Israeli institutions as part of its record $10 billion defense-tech private equity fund.

• Juniper Ventures, spun out of Climate Capital, launched a $10.6 million fund to invest in synthetic biology startups addressing climate challenges.

🚀 Startup of the Week

Introducing our Startup of the Week 🏆

xAI

xAI, Elon Musk’s AI company, recently raised $6 billion in Series C funding, bringing its total capital to $12 billion and boosting its valuation to $45 billion. This investment, from major backers like Andreessen Horowitz, Blackrock, Sequoia Capital, and Kingdom Holdings, will fuel the development of xAI’s AI infrastructure and models, positioning it as a strong competitor to OpenAI. Its flagship product, Grok, is integrated into Musk’s social platform X, offering features like chatbots and image generation with a unique, unfiltered approach. xAI is also leveraging data from Musk's other companies, including Tesla and SpaceX, to refine its AI models and improve technologies across these ventures. With plans for further expansion and innovation, xAI is quickly becoming a key player in the AI space.

💼 Investor of the Week

Introducing our Investor of the Week 🏆

Founders Fund

Founders Fund, a San Francisco-based venture capital firm co-founded by Peter Thiel, is reportedly raising $3 billion for its third growth equity fund. This follows the success of its second growth equity fund, which raised $3.4 billion in 2022 and has already deployed most of its capital into investments, including those in AI-focused companies. Known for backing revolutionary technology companies such as SpaceX and Stripe, Founders Fund currently manages approximately $12 billion in assets. The firm has not officially disclosed a target size for its new fund but has shared an estimate of $3 billion.

🤑 Opportunity Radar

Call for Applications: 100x Impact Accelerator

Apply to the 100x Impact Accelerator by 6 January 2025 for a 12-week program offering £150,000 in catalytic capital and access to world-class mentors, researchers, and policymakers. The program is open to social ventures addressing global challenges in areas such as climate, health, education, and equitable economies, with a focus on scalable, evidence-based solutions. Participants will join a cohort of like-minded entrepreneurs, gain long-term alumni membership, and present their work at a dedicated Summit Day.